Following the post-COVID stimulus hangover in 2022, the bull market has continued to run. One of the key factors was the Federal Reserve’s decision to
Weight a Minute: Will GenAI Transform Your Figure?
Published Date : October 30, 2023
In a period increasingly driven by technology and the pursuit of better health outcomes, innovation in weight loss drugs and Generative Artificial Intelligence (GenAI) have emerged as two promising avenues to address some of the most pressing issues facing society today. As GenAI progresses alongside innovations in weight loss drugs, we are going through one of the fastest evolutions in lifestyle changes seen in modern times. While they may seem unrelated, a close examination reveals a common thread and the potential for synergies between these two fields.
Historically, pharmaceutical companies have invested heavily in weight loss drug development with mixed results as they often come with undesirable side effects, limited efficacy, and are only prescribed in specific cases. However, innovation in the field of weight loss drugs has led to the development of novel compounds that are having success either curbing appetite, increasing metabolism, or reducing fat absorption. Some of the newest diet drug therapies have shown promise not only in reducing obesity, but potentially protecting against heart disease, stroke, alcohol dependency, and perhaps even kidney disease. For those who have not already taken the visual journey, type in “Ozempic before and after” in a search engine to see the celebrity transformations.
The expanding list of next generation branded weight loss drugs, including Ozempic, Wegovy, and Mounjaro, belong to a class of drugs called glucagon-like peptide-1 receptor agonists (shortened to GLP-1 agonists) initially used as type-2 diabetes medication. For diabetes patients, and for those who truly have difficulty shedding body weight, the GLP-1 drugs are said to be a game changer. Although there are questions behind the drug mechanism, the intention is to help manage blood sugar with a side effect of suppressing appetite, often resulting in weight loss. One other side effect is that these weekly injectable drugs drain your bank account by up to $1,000 per month in the U.S. for those without discounts, coupons, or insurance coverage.
Just as users might need to stay on the GLP-1 drugs to keep weight off, the GenAI movement is also life altering. GenAI’s many uses includes enhancing idea generation, helping complete work assignments and writing computer code. GenAI utilization will be integrated into pharmaceutical development to analyze vast datasets and identify correlations, trends, and potential drug candidates. Furthermore, GenAI could assist in an optimization of personalized healthcare by considering individuals’ preferences, genetic factors, and lifestyle choices. Whereas weight loss drugs have typically offered a one-large-size-fits-all approach, GenAI has the potential to create personalized weight loss plans by considering an individual’s unique genetic profile, dietary restrictions, and health history.
Safety is a critical factor in pharmaceutical research and GenAI might be able to expedite the drug discovery process by simulating the interactions of potential drugs with human biology, ideally identifying potential safety concerns early on. GenAI could also help individuals maintain an optimum weight by continually adapting and refining their weight management regime based on real-time data via a feedback loop.
GenAI is a nascent technology with evolving paths to investment. As it relates to the new diet drugs, we think they might need the test of time (and lower pricing) to warrant the recent hype given weight loss drugs have historically shown limited long-term sustainability. If GLP-1 headlines turn negative (due to an emergence of concerning side effects), the downward pressure on the related drug stocks could be hard to swallow. Nonetheless, rapid innovation in both technology and healthcare has the potential to significantly change the world as we know it, and numerous investment opportunities are likely to continue to emerge.
Sources: CNBC, Reuters
Articles and Commentary
Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.
Video Presentations
All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.
Other Posts By This Author
- – Can the Bull Market Continue to Run?
- – When Macro Overwhelms the Micro
- – Welcome Back to an Economic Cycle
- – Are We in the Midst of “The Great Reset”?
Related Posts
Recent Posts
